Primary Residence Hardship Request

[Guest kimvb]

Our plan allows for hardships for the purchase of a primary residence. Two employees (who are married to each other) have submitted hardship distribution requests from each of their accounts.

Earlier this month and prior to the settlement on their new house, they maxed out their loan options in each of their accounts. They have presented the Settlement Statement from December 9th as documentation to support the purchase of their primary residence. The transaction was finalized on that date and it appears that all funds were distributed at that time.

I do not consider this to be a true immediate and heavy financial need at this point. The settlement is not contingent upon the cash from the hardsip distribution - for all intents and purposes - it's a "done deal".

Am I right?

It doesn't help much to see on the front of the faxed request "We would like to request this due to a recent purchase of our first primary residence. We would like to have new appliances, and curtains and such."

I must provide guidance to our Plan Administrator and I'm relatively new to the 401(k) area of benefits. Any thoughts would be greatly appreciated.

[Guest Pensions in Paradise]

Based on what you've presented, I would agree that this does not qualify as a financial hardship.